Whalesbook
Ambitious Volume Targets
The Indian Gas Exchange (IGX) aims to significantly expand its footprint, targeting a quadrupling of gas trading volumes over the next five years. Chief Executive Rajesh Mediratta stated the goal is to reach 7% of India's total natural gas consumption by 2030. The exchange currently accounts for approximately 2.8% of this market.
Projections indicate India's daily gas demand will climb to 297 million standard cubic metres (mscmd) by 2030, up from around 190 mscmd presently. IGX saw its own volumes surge 62% year-on-year in calendar year 2025, averaging 5.4 mscmd. Achieving the 7% target would translate to approximately 21 mscmd traded on the platform.
Price Outlook and Demand Drivers
Global LNG prices are anticipated to fall, potentially settling between $6–$8 per mmbtu by 2030, a notable drop from the current $10 per mmbtu. This decline is attributed to increased export capacity, particularly from the U.S. and Qatar. Mediratta believes these lower prices will make LNG more accessible and stimulate domestic demand.
This price moderation is expected to make natural gas a more attractive fuel source for power producers and industrial users. Increased reliance on the spot gas market by these sectors will naturally drive more activity onto exchanges like IGX.
Infrastructure and Reforms
Expansion in India's city gas distribution networks and the development of trunk pipelines are crucial enablers. These infrastructure upgrades will connect more consumers to the gas ecosystem, increasing the addressable market for traded gas.
Mediratta also highlighted the supportive role of ongoing reforms. Bringing natural gas under the Goods and Services Tax (GST) framework, establishing an independent system operator, and introducing a new pipeline access code are expected to streamline operations and boost trading volumes. Allowing more domestic gas to be traded on exchanges is also seen as a positive catalyst.